The words ‘property market’ are used in every other sentence these days, with increases and decreases happening daily, this figure dropping and that figure rising, but what are we actually talking about?
Welcome to Quick Buyers official guide to understanding your local property market.
We’re going to break down the jargon and crunch the numbers, to make understanding the property ladder and all its facts and figures as easy as possible.
What figures do you need to be aware of?
When investigating the local property market of an area you’re interested in, there’s some key figures you want to be looking at.
Current Average Value of Properties
This is the figure that gives an average property value for the area, this can often highlight the wealth of an area and also gives you a good idea of what buying a property in the area could be worth.
Average Price Paid for Properties
Opposed to the average value, this is the number that gives the average price that is actually paid for a property in the area. This figure gives you a good idea of whether your budget can stretch to a property in that area, but also, what sort of offer is acceptable for a property in that area.
This is really important to consider, looking at the annual and monthly value change of properties in the area gives a good indication into whether there is positive or negative growth in that area’s property market, but also how stable house prices in the area are. An overall yearly increase is great, but if it dips and rises every month, you may want to look into that as that could signal an unstable area for property value.
What else do you need to look out for?
Aside from the basic figures, what else do you need to key an eye on in your local area’s property market?
Trends/ Patterns in Property Value Changes
When looking at the property value changes over a period of time, you want to make yourself aware of any patterns or trends you can see in the increase or decrease of value. Do properties decrease in value over a certain season/month every year? If so, you may want to look into why. Is the area subject to extreme weather in certain seasons, is it a popular tourist destination? If property values decrease consistently at a certain time, this may be a reason you don’t want to choose that location.
Amount of Property Sales in the Area
This is a figure that you should be aware of but take it ‘with a pinch of salt’. A good area will have a decent annual amount of house sales to show the area is capable of successful house sale and people want to buy houses round there, but too many house sales in a year in one area can be conducive with a problem in the area. Remember to compare the amount of house sales to the area’s population.
We hope this whistle stop tour of the property market has made things easier to understand.